qualified interconnection property

(8) Interconnection property (A) In general For purposes of determining the credit under subsection (a), energy property shall include amounts paid or incurred by the taxpayer for qualified interconnection property in connection with the installation of energy property (as defined in paragraph (3)) which has a maximum net output of not greater than 5 megawatts (as measured in alternating current), to provide for the transmission or distribution of the electricity produced or stored by such property, and which are properly chargeable to the capital account of the taxpayer. (B) Qualified interconnection property The term “qualified interconnection property” means, with respect to an energy project which is not a microgrid controller, any tangible property— (i) which is part of an addition, modification, or upgrade to a transmission or distribution system which is required at or beyond the point at which the energy project interconnects to such transmission or distribution system in order to accommodate such interconnection, (ii) either— (I) which is constructed, reconstructed, or erected by the taxpayer, or (II) for which the cost with respect to the construction, reconstruction, or erection of such property is paid or incurred by such taxpayer, and (iii) the original use of which, pursuant to an interconnection agreement, commences with a utility. (C) Interconnection agreement The term “interconnection agreement” means an agreement with a utility for the purposes of interconnecting the energy property owned by such taxpayer to the transmission or distribution system of such utility. (D) Utility For purposes of this paragraph, the term “utility” means the owner or operator of an electrical transmission or distribution system which is subject to the regulatory authority of a State or political subdivision thereof, any agency or instrumentality of the United States, a public service or public utility commission or other similar body of any State or political subdivision thereof, or the governing or ratemaking body of an electric cooperative. (E) Special rule for interconnection property In the case of expenses paid or incurred for interconnection property, amounts otherwise chargeable to capital account with respect to such expenses shall be reduced under rules similar to the rules of section 50(c).


26 USC § 48(a)(8)

Scoping language

For purposes of this paragraph
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